I had the same reaction. But I think it makes sense. It's basically a distribution center with some good customer service, so there is little use to people adding more value and climbing ladders. Meaning they only need what are essentially entry-level employees. Jobs which in yesteryear would have employed students... But now employ the undereducated instead.
At least they doing it in a nice way. Sure it hides what they are really doing by making out to be something different and fancy, but they are giving the atheists a way out, instead of going for their head (count)s.
So when Jenny in marketing makes a new deal with Adidas and promises to have their newest shoe out the door in a week, James from shipping has to stop doing his job shipping things... to have a meeting with Jenny, and then Adidas, to explain why they aren't able to meet the timeline?
To suggest that managers aren't needed because the "group can just do it", is absurd. EVERY company has multiple departments in charge of different areas of the business. The job of a GOOD manager is to insulate the "do-ers" from having to deal with other areas of the business so they can focus on doing their actual job. Removing that title and "giving it to the group" sounds like a good way to create a lot of busywork to save a few dollars. And I can just imagine that the employees are expected to still get all of their normal work done - which means working after hours to have the meetings they should be having during the day, but can't because they're doing "their day job".
Maybe zappos has some crazy unique structure to how they do business, but I'm skeptical.
I disagree. Interesting people can and do work through the ranks at companies. Additionally, a good manager is someone who can encourage and help a mediocre employee become a good or great employee. A flat team means that everyone is stuck doing the same repetitive job, and there's no one /to/ go to to discuss issues who has a bit of detatchment.
I think the point of this move is that Tony Hsieh does not want anyone who "can and does work through the ranks" to be working at Zappos. He's built a business upon great customer support for selling shoes. The ideal employee for this business is someone who is really passionate about helping customers solve their shoe problems. A manager above them would just get in the way of their helping customers, and an employee who wants to be a manager is not focusing on helping customers.
I don't disagree... But all they Zappos need is pretty much a basically functioning employee. Not any management value added. They can formulate these cells to expel any non-hackers* (those who dont meet their reqs).
You want to find some followers among the jaded, found a cult/church with a twist. It's vaguely familiar but oh so different and full of vigor. Not staid and old. Those naysayers just don't get it.
* the other meaning of hacker.
In other words it gives grunt work a new shiny sheen.
At least they doing it in a nice way. Sure it hides what they are really doing by making out to be something different and fancy, but they are giving the atheists a way out, instead of going for their head (count)s.